Promises Made, Promises Kept: The ‘Cross Your Heart’ Investment

Promises Made, Promises KepBy Tristan Ellis, Staff Writer


We make promises many times in our lives, to spouses, kids, friends and others. A promise is a future debt owed and simply put, an obligation. Too often in life we are unable to keep all our promises and they become unpaid debts.

We also live our financial lives depending on promises. The bank promises to pay us interest and to keep our savings safe. The promise the car warranty guarantees us when we buy a new car. It goes on and on.

Wall Street made promises to all of us. They promised to provide us with products that had value and an agreed upon level of safety. They failed in that promise. The reason is very simple; they are greedy and placed their own needs and goals over the people who trusted them and their products. I happen to feel the blame is very narrow on the Wall Street category and responsibility really lies with only a handful. Most people associated with these firms are hard working tax payers just like everyone else. The greed factor drove the market but the greedy re those at the top and those who controlled the boards of directors. Profits were the motivator and greed was the gasoline. Combining this greed and the lack of oversight created this monster that is now consuming all of us.

Back to promises.

Lots of people do keep promises and many companies also keep their promises. Think of the enormous obligation an insurance company shoulders when they accept a customer’s money in return for a future guarantee. Are those promises kept? Yes they are and the question is why they are kept. The answer is very simple, conservatism and oversight. No industry is more regulated than the insurance industry, from federal oversight to state rules and regulations, the industry is transparent and information is available for all to see.

Annuities are the backbone of many people’s retirement. Annuities are promises to pay. The insurance company accepts the responsibility of prudent management and protects the future obligations to its annuitants. Annuities work because they are guaranteed and because they are backed with “real” safe dollars.

In the course of American history including the Civil War, the Great Depression and our current times, no one has ever lost a penny in an annuity. No one has ever missed a retirement check with funds from an annuity. No beneficiary has ever been denied their benefits with funds in an annuity.

Annuities are safe and they are guaranteed. They are dependable and they are reliable. They are the backbone of our financial well being and our future security. Wall Street and those who have abused the system can never say that.

Safety and security is our promise, a promise that will be guaranteed to be kept.

Like all important matters, always consider legal and tax consequences. Consult an expert before making any final decision.